South East Asia Automotive Summit, 2012Aftersales Market: Strengthening the role of Automotive Independent Workshop (Work in Progress) Joko Wiyono Managing Director Qasa Strategic Consulting
SE Asia is a growing market for automotive industry with Indonesia and Thailand as key market driversBrunai and Singapore: MatureMalaysia: Almost MatureVietnam and the Philippines: FuturePotentialIndonesia and Thailand: Growing Market Market Maturity, 2011 390 340 Brunai Vehicles Penetration 290 240 Malaysia 190 Thailand 140 Singapore 90 Indonesia 40 Philippines GDP Per Capita (000 USD) ‐10 Vietnam ‐20 ‐10 ‐ 10 20 30 40 50 60 70
Automotive sales in SE has increased significantly • In the last 4 years, as many as 10,3 million cars are added to the parc in 6 SE Countries. • About 33% additional cars are in Thailand and 31% in Indonesia. • In the case of Indonesia, about 56% of additional cars are in MPV <1.5L category 2009 2010 2011 2012 1400 1200 1000Vehicles 800 600 400 200 0 Brunai Indonesia Malaysia Philippines Singapore Thailand Vietnam
Future Economic of the region is promising, expect higher sales in near future Population GDP/cap GR (2009-11) 2012-16Brunai 0.425 38.534 1,9% n/a In Indonesia alone there’ll Indonesia 241.030 3.512 6,1% 7% be an Malaysia 28.553 10.085 5,1% 5% additional of Philippine 1,6 million s 95.856 2.345 3,7% 5% cars in 2015Singapore 4.740 60.500 4,9% 5% The industry expects at leastThailand 64.076 5.395 >3 0,9% million units new 5% vehiclesVietnam added to the market in 1.374 89.316 2015. 5,9% 6% The industry should keep up with aftersales service facilities (quan and qual) to ensure customer has good access to the service
Aftersales service is one of key drivers forcustomer in selecting car brand theypurchase...Aftersales service is: • an area that a car brand connects with its customer • an area that the brand communicates “trust” to customer • an area to maintain “reason to buy” for the brand • big business that often being “neglected” by auto maker So, the aftersales service is NOT cost center!!
Currently, capacity of authorized aftersales service is still limited.... 85% of post-warranty repair are performed by Independent Workshop # Authorized Workshop Things often complained by 2012*) customer: 235 227 “High bill charges (components 197 and labour costs are equall 181 expenssive) and long queu, especially during weekend” 100 79 83 45 40 30 32 29 TOYOTA DAIHATSU MITSUBISHI SUZUKI NISSAN HINO HONDA MAZDA ISUZU KIA HYUNDAI FORD *) some figures still need validation Major challange is network coverage!!
Independent workshop as alternative extension of car manufacturer for improving Aftersales service to customerCharacteristics: Est. Independent Workshop Population Ownership is highly fragmented Family owned and managed 1% 5% 1% No applicable standard service Franchised 13% Workshop Multi sources parts -- ready stock only for high moving parts Quick Fit High degree variation in terms of Independent • #mechanics and skills Workshop • Equipments and facilities 80% Spare‐part Shop • Service level Source: Estiated form Qasa Consulting outlets census Major customers: ageing cars, low cost cars after An estimate warranty period is off of 30-35,000 workshops national wide
Sthrengthening Role of IndependentWorkshopBuilding new authorized workshop requires extensive investment Standard Periodical Car Maker of service Service An innovative mutual Audit cooperation workshop concept should be developed Authorized Workshop (current format) • Mechanic skills • Genuine Empowering Independent (recommended) Workshop to keep up with Tier 1: Fully Certified parts supply system growth of new cars on the Workshop • Minimum standard service road requirements • Pricing Tier 2: Certified Workshop for Quick Service
Vehicles Parc has been double in .. years Vehicle Parc, 2011 17,591 9,605 10,101 2,996 1,754 ‐ ‐ Brunai Indonesia Malaysia Philippines Singapore Thailand VietnamAnd there’ll be an additional of 3 million unitsevery year...